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What were some of the warning signs that the U.S. economy may not have been as strong as the stock market indicated?

( I need paragraphs)


Sagot :

Some of the warning signs indicated by the stock market about the US economy were failures in banking structures, an increase in unemployment rates, and a cutting down of production.

What do you mean by the stock market?

The stock market is the market where the investors buy and sell stocks of the company.

After the crashing of the stock market in the year 1929, the US economy faced a steep down in production due to which prices were also declining, the unemployment rate was increased, the banking structure gets disruptive as they didn't have enough funds, and the homelessness and poverty also rises.

Therefore, the stock market indicated that the US economy may not be strong enough due to a downfall in production, rising unemployment, etc. were some of the warning signs.

Learn more about the stock market crash in the related link:

https://brainly.com/question/1124518

#SPJ2

Answer:

I know im very late but here's my answer.

Explanation:

In the spring and summer of 1929, the U.S. economy was riding high on the decade-long winning spree called the Roaring Twenties, but the Fed was raising interest rates to slow a booming market and an increasingly vocal minority of economists and bankers were beginning to wonder how long the party could possibly last.

In 1929, popular prognosticators like the Yale economist Irving Fisher swore that if a correction came, it would look like a harmless slump, while others predicted a jagged cliff. But nobody, absolutely nobody, could have foreseen the stock-market slaughter that happened in late October.

On two straight days, dubbed Black Monday and Black Tuesday, the stock market crashed by 25 percent and by mid-November it had lost half its value. When the market collapse finally hit rock bottom in 1932, the Dow Jones Industrial Average had withered away by a staggering 90 percent.

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